The rates of liquor are likely to increase by eight to 12 percent, as the revised excise duty regime and increased retailers margin component on liquor, notified by the Delhi government, will come into effect from Tuesday.

The Delhi government has decided to increase the retailer’s profit margin in order to promote fair play and make the liquor trade more profitable.

According to the revised list, the retailer's profit margin component on beer has been hiked from the existing 8 percent to 12 percent of wholesale price.

The retailer's profit margin on Indian Made Foreign Liquor (IMFL) has been increased to 20 percent from the existing 15-18 percent of the wholesale price.

The retailer's profit margin on country liquor (Delhi Medium Liquor) has been increased from three to six percent.

"All this will come into effect from today," according to an official order issued by the Office of the Commissioner of Excise, Entertainment and Luxury Tax.

The rates of beer have been increased by Rs 5 and Rs 20 per bottle and prices of IMFL have gone up by Rs 25 and Rs 40 per bottle.

With the increase in rates, the department aims to collect additional Rs 250 crore as it was unable to meet its revenue target of Rs 3,200 crore in last financial year and earned revenue of Rs 3,151 crore.

In this financial year, the government aims to collect Rs 3,600 crore from excise.